The Bank of Canada has an inflation target of 1%-3%. Official unemployment unemployment is running under 7%, which Statscan says is the lowest in three decades. The overnight rate is 3%, 75 basis points below the fed funds rate. The 10 year bond is yielding a little over 4 %, a half percent below the 10 year Treasury. The strengthening CAD dollar, powered by higher commodity prices and now at around 84 cents US, is allowing the B of C to keep rates at or slightly below the US - not the usual state of affairs.
----- Original Message ----- From: "Jim Devine" <[EMAIL PROTECTED]> To: <[email protected]> Sent: Wednesday, October 26, 2005 3:45 PM Subject: Re: [PEN-L] Ben "printing press" Bernanke I was kidding about "too much hockey." But some Canadian should answer, as Paul Phillips did. I may have confused "monetarism" (whatever that means) with "inflation targeting." Some article I read recently refered to the latter in Canada, but Paul describes it as monetarism. On 10/26/05, Jim Devine <[EMAIL PROTECTED]> wrote:
> >Tell the people of New Zealand or Canada (where inflation targeting > >has been applied) that it's "effectively Keynesian." > > What's so bad about Canada? > > Doug > too much hockey. -- Jim Devine "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante.
-- Jim Devine "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante.
